Investors Lose Millions During Market Downturn with Controversial Financial Product, XIV
From the Desk of Jim Eccleston at Eccleston Law LLC:
In early February, as the Dow Jones industrial average dropped nearly 1,600 points, many analysts pointed to Credit Suisse’s VelocityShares Daily Inverse VIX Short-Term exchanged-traded note (ETN), or XIV for short, as a major factor that caused staggering market losses.
Moreover, analyst argued that the reason XIV played such a significant role in causing staggering market losses had to do with the fact that the product shorts volatility by betting on calm market conditions.
Furthermore, during the market downturn, the price of XIV dropped from $109 a share, to as low as $10.10 a share, causing significant losses for investors who owned the product.
In response, Credit Suisse announced that the XIV shares would stop trading and that the fund would close.
Eccleston Law continues to investigate and is interested in speaking with any retail investors who bought through Credit Suisse.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory Matters, Transition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
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